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    SDX Expands Morocco Position

Summary

The new acreage is next to its operations and infrastructure.

by: William Powell

Posted in:

Natural Gas and LNG News, Africa, Corporate, Exploration & Production, News By Country, Morocco

SDX Expands Morocco Position

AIM-listed explorer SDX Energy has increased its presence in Morocco with the awards of the Moulay Bouchta Ouest and Lalla Mimouna Sud licences, it said February 7. Both are for eight years and carry relatively light commitments.

To retain the Moulay Bouchta Ouest exploration licence (SDX 75% working interest and operator) which covers 458 km2 SDX must reprocess 150 km of 2D seismic data, acquire 100 km2 of new 3D seismic and drill one exploration well within the first three-and-a-half-year period.

The Lalla Mimouna Sud licence (SDX 75% working interest and operator) covers an area of 857 km2 and was part of the original group of concessions that SDX acquired as part of the Circle Oil acquisition in 2017.  The concession expired after all the work commitments had been fulfilled and SDX reapplied for the acreage after the acquisition of additional 3D seismic in the area. SDX has to acquire 50 km2 of 3D seismic and drill one exploration well within the first three-year period.

 CEO Paul Welch said Morocco is a key growth area for SDX and both permits offer significant underexplored hydrocarbon potential and are next to its operations and infrastructure. The award also gives SDX and its partner control over the entire onshore Gharb Basin.

SDX plans a 12-well drilling programme to start in H2. With the addition of these new permits, SDX said it would be able to grow its reserves and production base in Morocco, and generate significant value for our stakeholders. Its partner is the Moroccan Office National des Hydrocarbures et des Mines.

Brokers Cantor Fitzgerald said: "SDX will be kicking off a 12-well drilling programme in Morocco in the second half of this year and with new customer additions in recent months, the platform for near-term growth is well established."